Foreign students adding economic value toWales
Students from overseas bring more than £716m to the Welsh economy according to a report published today.
The report by Universities Wales shows that international students studying at Welsh universities are having an immediate and significant impact on the Welsh economy.
Welsh universities are successful in attracting more than 22,000 students from 140 countries all over the world to study in Wales. Three-quarters come from outside the European Union, with the largest cohort (44%) coming from Asia, excluding the Middle East.
The data comes from the 2015-16 academic year and does not reflect any impact from the EU referendum.
Professor Julie Lydon, chair of Universities Wales and vice-chancellor of the University of South Wales, said: “This report demonstrates the immeasurable social and cultural value of our international students, showing that their presence brings immediate and significant economic value to our local and national economies.
“It lays out how an international Welsh higher education sector strengthens Wales’ global presence and attracts investment, with an immediate and positive impact on communities across Wales.”
The research, conducted by Viewforth Consulting, found that in 201516 international students and their visitors generated £716m of Welsh output through their spending.
This significant economic contribution was generated through both on-campus and off-campus expenditure, with tuition fees, accommodation costs and money spent in local cafes, bars and shops all producing over £372m of gross value added (GVA) and generating 6,850 full-time equivalent jobs.
The analysis also showed that the impact flowed across Wales, with more than 1,598 jobs being created in areas which do not have a university presence.
CBI Wales director Ian Price said: “The Welsh business community recognises the significant contribution international students make to the local economy. In an increasingly global trading environment, international students bring new ideas, important skills and links to networks around the world.
“These links will become even more crucial in a post-Brexit economy, and it is vital that the Government and local community look at how they can support the Welsh universities’ international work to ensure that they can continue to help the country thrive.”
International students and their visitors spent £487m in 2015-16, equivalent to 3.7% of all Welsh export earnings in 2015. The figure was also greater than the total estimated 2016 international tourist and visitor spend in Wales.
International MBA graduate Aadil Mukhtar, founder and senior consultant of Marketing Runway, a Cardiff-based start-up offering business consulting, digital marketing and technology solutions, said: “Studying in Wales provided me with a perfect platform to establish my business, which now offers its services in 17 countries around the world.
“For a thriving Welsh economy, it is vital that these opportunities are available to entrepreneurs and global businesses who want to come to Wales, especially post-Brexit.”
Royal Welsh College of Music & Drama graduate Daphne Chook Pui Yee, music co-ordinator and cofounder of International Music School Cardiff, added: “Being able to set up my business with international networks and the support from my university has helped to build my business in Wales, and it is crucial that international graduates are being recognised as important contributors to the Welsh economy development.”
Overseas students make up 17% of the total of 128,670 students in Wales. Since 2013-14, non-EU international student numbers have dropped by 3230, or 16.2%.
Universities Wales said it expected these reductions to be offset in future recruitment trends by the efforts of the Welsh Government and Welsh universities in fostering positive relationships with the global higher education market, particularly in South Asia, where there has been the biggest reduction.
Education Secretary Kirsty Williams said: “Wales continues to be recognised internationally as an exceptional place to study and live, with a reputation for excellence.
“This report demonstrates that the strength of Welsh universities in attracting students from all over the world to study here brings both social and economic value to our campuses and communities, with international students making a significant contribution to the wider Welsh economy.”